The Southwest endured anther quiet sale during the June petroleum and natural gas rights sale, generating just $139,326 in activity.
Province wide, June's sale generated $9.6 million in activity, led by $7.9 million in bidding for rights in the Weyburn-Estevan area. The Lloydminster area was second in activity with $1.4 million in activity, with the Kindersley-Kerrobert area placing third with $208,370 in interest.
The Swift Current area's $139,326 in interest is the second lowest single sale in the Southwest dating back to 1995. There was no bid activity in the Southwest during the 2012 sale.
Year to date, the Swift Current region has recorded $2.43 million in interest during the petroleum and natural gas rights sales. Saskatchewan wide the three land sales during 2013 have collected $29.3 million in revenue for the province (Weyburn-Estevan area $16.6 million; Lloydminster area $8.4 million; Kindersley-Kerrobert $1.83 million).
Energy and Resources Minister Tim McMillan said that production in the Weyburn-Estevan area is driving oilfield activity in the province.
“We have seen production in the Bakken area reach 69,000 barrels per day and this is driving investment in the area,” McMillan stated in a press release. “The majority of the lands sold in the Weyburn-Estevan area are targeting Bakken-prone lands, accounting for more than 80 per cent of the sale total.”
“While the Bakken garnered most of the attention, we are particularly interested in a cluster of parcels that sold near Avonlea,” McMillan said. “This is a dynamic industry and it is encouraging that industry is confident in the potential for new discoveries in Saskatchewan.”
The deeper Red River Formation produced oil for a short time near Avonlea in the 1990s, and several other geological horizons have been tested in the past in this area. The province is optimistic that exploration of these lands will provide further information on production potential.
The next sale of Crown petroleum and natural gas and oil shale dispositions will be held on August 12.